1. needforbbx's Avatar
    I think the title is more sensational compared to the rest of the write up, but here you go...

    BlackBerry Ltd. (BBRY) Chief Executive Officer John Chen said he’d eventually consider spinning off or selling the smartphone maker’s BlackBerry Messenger instant-messaging service once he’s built it into a more formidable competitor.

    “Running a public company, anything to help our shareholders I need to take a very serious look at,” Chen said in an interview today with Bloomberg Television at the Mobile World Congress in Barcelona. “Today I think we need to build up that base and build up the innovation model.”

    Chen’s renewed focus on BBM and the company’s business users has sparked a prolonged rally in the stock, which continued last week after Facebook Inc. (FB) agreed to pay $19 billion for rival messaging service WhatsApp Inc. Chen, a former SAP AG (SAP) executive who joined BlackBerry in November, today unveiled a new encrypted version of BlackBerry Messenger, aimed at its core of security-minded customers.

    “The potential is going to be huge,” Chen said of BBM. “Until we get to the point that we can showcase that potential it is a bit too early to think about getting our $19 billion.

    Facebook made its biggest acquisition ever last week to acquire WhatsApp and its more than than 450 million users, highlighting what BBM could be worth. BlackBerry’s service now has more than 85 million active monthly users, Chen said today. The price Facebook paid for WhatsApp implies a valuation for BBM of as much as $3.6 billion.


    Photographer: Simon Dawson/Bloomberg
    BlackBerry Ltd. Chief Executive Officer John S. Chen said in an interview, “Nobody has... Read More
    BBM Protected

    Chen today unveiled in Barcelona the BBM Protected service, which has improved encryption technology aimed at enterprise customers like bankers and traders who have traditionally been its most faithful customers.

    “Nobody has a secure messaging infrastructure and we’re the only ones who have it,” Chen said in the interview. “It’s important that we showcase and use that as a differentiator into the thousands and thousands of enterprise customers.”

    BBM customers interact more frequently with the service because many clients use it for professional purposes, Chen said. The extension of the service to Microsoft Corp.’s Windows Phone platform announced yesterday will give it an additional boost, he said.

    “I think you will see a natural progression and uptick of our user numbers,” Chen said at the Mobile World Congress today. “There is a lot of value in our user base and it’s going to be an asset for the company.”

    The Facebook deal does not change the strategy for BBM, he said.

    BlackBerry climbed as much as 4.4 percent in early trading after rising 7.6 percent to $9.83 in New York yesterday.

    BlackBerry CEO to Consider BBM Sale, Spinoff in Future - Bloomberg
    02-25-14 08:41 AM
  2. Tre Lawrence's Avatar
    Yep, the headline is screaming for attention LOL.

    JC's job is to look at all angles, so I do not have a problem with measured research on his part.
    MERCDROID likes this.
    02-25-14 09:16 AM
  3. stabstabdie's Avatar
    I think the title is more sensational compared to the rest of the write up, but here you go...

    BlackBerry Ltd. (BBRY) Chief Executive Officer John Chen said he’d eventually consider spinning off or selling the smartphone maker’s BlackBerry Messenger instant-messaging service once he’s built it into a more formidable competitor.

    “Running a public company, anything to help our shareholders I need to take a very serious look at,” Chen said in an interview today with Bloomberg Television at the Mobile World Congress in Barcelona. “Today I think we need to build up that base and build up the innovation model.”

    Chen’s renewed focus on BBM and the company’s business users has sparked a prolonged rally in the stock, which continued last week after Facebook Inc. (FB) agreed to pay $19 billion for rival messaging service WhatsApp Inc. Chen, a former SAP AG (SAP) executive who joined BlackBerry in November, today unveiled a new encrypted version of BlackBerry Messenger, aimed at its core of security-minded customers.

    “The potential is going to be huge,” Chen said of BBM. “Until we get to the point that we can showcase that potential it is a bit too early to think about getting our $19 billion.

    Facebook made its biggest acquisition ever last week to acquire WhatsApp and its more than than 450 million users, highlighting what BBM could be worth. BlackBerry’s service now has more than 85 million active monthly users, Chen said today. The price Facebook paid for WhatsApp implies a valuation for BBM of as much as $3.6 billion.


    Photographer: Simon Dawson/Bloomberg
    BlackBerry Ltd. Chief Executive Officer John S. Chen said in an interview, “Nobody has... Read More
    BBM Protected

    Chen today unveiled in Barcelona the BBM Protected service, which has improved encryption technology aimed at enterprise customers like bankers and traders who have traditionally been its most faithful customers.

    “Nobody has a secure messaging infrastructure and we’re the only ones who have it,” Chen said in the interview. “It’s important that we showcase and use that as a differentiator into the thousands and thousands of enterprise customers.”

    BBM customers interact more frequently with the service because many clients use it for professional purposes, Chen said. The extension of the service to Microsoft Corp.’s Windows Phone platform announced yesterday will give it an additional boost, he said.

    “I think you will see a natural progression and uptick of our user numbers,” Chen said at the Mobile World Congress today. “There is a lot of value in our user base and it’s going to be an asset for the company.”

    The Facebook deal does not change the strategy for BBM, he said.

    BlackBerry climbed as much as 4.4 percent in early trading after rising 7.6 percent to $9.83 in New York yesterday.

    BlackBerry CEO to Consider BBM Sale, Spinoff in Future - Bloomberg
    Definitely a misleading title for the article. All he really said was "Running a public company, anything to help our shareholders I need to take a very serious look at,"
    So basically, nothing is off the table 100%. Which is what he needs to say.
    There's literally nothing he said that would suggest that selling off BBM is part of the plan, it's just not, not the plan.....
    JeepBB likes this.
    02-25-14 09:16 AM
  4. JeepBB's Avatar
    Nice find OP, thanks.
    As others have said, it's all speculative atm.
    As to BBM being worth billions based on the WhatsApp price... erm no. WhatsApp has a profitable business model, BBM doesn't earn BB a dime.

    JBB
    Last edited by JeepBB; 02-25-14 at 01:19 PM.
    02-25-14 09:36 AM
  5. mikeo007's Avatar
    Who would buy it?
    And if it becomes extremely profitable, why would BB want to sell it?
    Doesn't really make sense to me.
    JeepBB, MERCDROID, milo53 and 1 others like this.
    02-25-14 09:39 AM
  6. THBW's Avatar
    Nice find OP, thanks.
    As others have said, it's all speculative atm.
    As to BBM being worth billions billions based on the WhatsApp price... erm no. WhatsApp has a profitable business model, BBM doesn't earn BB a dime.

    JBB
    Sorry but WhatsApp doesn't make a dime. IM is a low budget business and this will never change as the barriers to entry are low. All Whatsapp can do is pirate your of private information which is why FB bought them. BBM has a chance in the secure market.
    Carterbits likes this.
    02-25-14 10:05 AM
  7. anon(5818411)'s Avatar
    Sorry but WhatsApp doesn't make a dime. IM is a low budget business and this will never change as the barriers to entry are low. All Whatsapp can do is pirate your of private information which is why FB bought them. BBM has a chance in the secure market.
    1$ per year per user of 200mil+ users in not exactly not making a dime. It's rapidly increasing as well.

    Posted via CB10
    Rello and JeepBB like this.
    02-25-14 10:41 AM
  8. birdman_38's Avatar
    Sounds like Chen realizes that should have happened long ago.
    02-25-14 10:47 AM
  9. stabstabdie's Avatar
    1$ per year per user of 200mil+ users in not exactly not making a dime. It's rapidly increasing as well.

    Posted via CB10
    That's funny bc I've never once paid them anything and I've never been cut off. On any device I've used it on
    02-25-14 11:18 AM
  10. birdman_38's Avatar
    That's funny bc I've never once paid them anything and I've never been cut off. On any device I've used it on
    On a conference call following the announcement, a reporter asked a question about churn. It was pointed out WhatsApp implemented that model less than a year ago.
    JeepBB likes this.
    02-25-14 11:21 AM
  11. THBW's Avatar
    1$ per year per user of 200mil+ users in not exactly not making a dime. It's rapidly increasing as well.

    Posted via CB10
    And tell me exactly how many are paying 1 dollar. It certainly isn't 200 million. I doubt it isn't even 2 million for their so called premium service. Might I suggest that you go and read the recent business write up in the NYT as to the Whatsapp business model. I think you will find it quite valuable.
    02-25-14 11:29 AM
  12. BroncoVAL's Avatar
    I am pretty sure that if BlackBerry were to offer BBM and top secured messaging and Balance (private/public use of BlackBerry devices) a lot of people would spend another few bucks /year.
    At least i'd love to have Balance to switch easily between job stuff and entertainment.

    Posted via CB10
    02-25-14 11:36 AM
  13. anon(5818411)'s Avatar
    And tell me exactly how many are paying 1 dollar. It certainly isn't 200 million. I doubt it isn't even 2 million for their so called premium service. Might I suggest that you go and read the recent business write up in the NYT as to the Whatsapp business model. I think you will find it quite valuable.
    That's funny bc I've never once paid them anything and I've never been cut off. On any device I've used it on
    Sorry but WhatsApp doesn't make a dime. IM is a low budget business and this will never change as the barriers to entry are low. All Whatsapp can do is pirate your of private information which is why FB bought them. BBM has a chance in the secure market.
    Read the description
    https://play.google.com/store/apps/d...whatsapp&hl=en "First year FREE! ($0.99 USD/year after)"
    https://itunes.apple.com/ca/app/what...UvbUpU10051894 "First year FREE! ($0.99 USD/year after)"
    WhatsApp | Windows Phone Apps+Games Store (Canada) "First year FREE! ($0.99 USD/year after)"
    WhatsApp Messenger - BlackBerry World "First year FREE! ($0.99 USD/year after)"

    I really have no other way to prove it to you..

    hence why i said 200+million users for now paying 1$ per year because half of their user base (450+ million active user count total) was over the past year, which is why they haven't paid their 1$ fee yet.
    JeepBB likes this.
    02-25-14 11:54 AM
  14. Rello's Avatar
    If someone offered him 19 Billion for BBM I would expect him to sell it too lol

    Posted via CB10
    02-25-14 12:09 PM
  15. stabstabdie's Avatar
    Read the description
    https://play.google.com/store/apps/d...whatsapp&hl=en "First year FREE! ($0.99 USD/year after)"
    https://itunes.apple.com/ca/app/what...UvbUpU10052079 "First year FREE! ($0.99 USD/year after)"
    WhatsApp | Windows Phone Apps+Games Store (Canada) "First year FREE! ($0.99 USD/year after)"
    WhatsApp Messenger - BlackBerry World "First year FREE! ($0.99 USD/year after)"

    I really have no other way to prove it to you..

    hence why i said 200+million users for now paying 1$ per year because half of their user base (450+ million active user count total) was over the past year, which is why they haven't paid their 1$ fee yet.
    I know this info. I'm just saying I haven't been charged.


    On a conference call following the announcement, a reporter asked a question about churn. It was pointed out WhatsApp implemented that model less than a year ago.
    thanks for the info.
    I thought i remembered this first year free model from more than a year ago. Guess not. Thanks.
    anon(5818411) and JeepBB like this.
    02-25-14 12:34 PM
  16. stabstabdie's Avatar
    On a conference call following the announcement, a reporter asked a question about churn. It was pointed out WhatsApp implemented that model less than a year ago.
    OK so I've been digging, and I'm finding articles that discuss the first year free then $.99 after that dating back well beyond a year. (here's just one: http://www.androidpit.com/is-whatsapp-free)

    Since the app hit android in 2010, that was the deal, first year free, 99 cents after. The catch is, no one was actually charged after a year. It was $.99 from day one on iPhone.

    Perhaps just the collection of fee's actually occurring is new, the policy isn't.

    I was right in my first post after all.
    JeepBB likes this.
    02-25-14 01:12 PM
  17. JeepBB's Avatar
    So, have we reached a point of acceptance that WhatsApp does indeed have a business model that is supported by a charging mechanism (which it seems is starting to be used), and one that monetises their 450M users?

    Maybe that means WhatApp might bring returns worth more than a dime?

    I can't see any heaped dimes in BBM's corner... maybe the light is bad?

    Also, tangentially related to why WhatsApp might be worth the price Facebook paid, it seems WhatsApp will be bringing voice messaging in Q2.

    What's up with that WhatsApp $19bn price tag? Answer: Voice calls • The Register

    So, no. I doubt very much that BBM, in it's current form, is worth $3.6 billion.
    02-25-14 01:33 PM
  18. DenverRalphy's Avatar
    I think many people missed or misinterpreted Chen's statement that he'd sell BBM.

    What he basically said, was that if anybody offered $19 billion for BBM, he'd take it in a heartbeat because it's a fool's purchase. Then he'd use a very small fraction of the profit, and startup a new messenger.

    Basically, all he was saying is that a $2 billion investment would be enough to build your own instead of tossing away an extra $17 billion to purchase one already in place.

    Sent from my SCH-I545 using Tapatalk
    Laura Knotek likes this.
    02-25-14 01:42 PM
  19. stabstabdie's Avatar
    I think many people missed or misinterpreted Chen's statement that he'd sell BBM.

    What he basically said, was that if anybody offered $19 billion for BBM, he'd take it in a heartbeat because it's a fool's purchase. Then he'd use a very small fraction of the profit, and startup a new messenger.

    Basically, all he was saying is that a $2 billion investment would be enough to build your own instead of tossing away an extra $17 billion to purchase one already in place.

    Sent from my SCH-I545 using Tapatalk
    You got that out of the article that was posted above??
    I want what you're on, it must be goooooood.

    Literally nothing that even resembles what you just said is in that article. Maybe link us to whatever you read?
    02-25-14 01:55 PM
  20. DenverRalphy's Avatar
    You got that out of the article that was posted above??
    I want what you're on, it must be goooooood.

    Literally nothing that even resembles what you just said is in that article. Maybe link us to whatever you read?
    No, I didn't get it from that article itself. I actually backtracked through source material to actually see original context versus snipped quote context. But hey, if that's some form of hallucinogen, guilty as charged.

    Sent from my SCH-I545 using Tapatalk
    02-25-14 02:09 PM
  21. stabstabdie's Avatar
    So, have we reached a point of acceptance that WhatsApp does indeed have a business model that is supported by a charging mechanism (which it seems is starting to be used), and one that monetises their 450M users?

    Maybe that means WhatApp might bring returns worth more than a dime?

    I can't see any heaped dimes in BBM's corner... maybe the light is bad?

    Also, tangentially related to why WhatsApp might be worth the price Facebook paid, it seems WhatsApp will be bringing voice messaging in Q2.

    What's up with that WhatsApp $19bn price tag? Answer: Voice calls • The Register

    So, no. I doubt very much that BBM, in it's current form, is worth $3.6 billion.
    They didn't pay for the service, they paid for the users.
    Facebook currently is making approximately $1.75 per user per quarter.
    (source: http://www.forbes.com/sites/tristanl...-a-user-worth/)
    If you assume that all 450 million users of whatsapp are new to Facebook (which would be a ridiculously insane assumption), they will make over 3 billion a year. In reality, this number will be much less than that.


    At $42 a user(what Facebook paid for whatsapp), bbm would be valued at 3.6 billion, they can buy that next year with their whatsapp money
    02-25-14 02:12 PM
  22. bbmme's Avatar
    This better be a sick joke

    Posted via the Android CrackBerry App!
    02-25-14 06:22 PM
  23. tchocky77's Avatar
    BBM was spun off from the rest of the company precisely so it could be sold if the opportunity arises.


    Sent from my iPad using CB Forums
    02-25-14 09:38 PM

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